by Tom Regan | Dec 6, 2011 | Audit
Parties to a divorce action may dispute the intent or impact of their agreement or the court’s order. One area of dispute is the character of a payment as alimony/maintenance or a property settlement. The payment of alimony/maintenance is deductible by the payor...
by Tom Regan | Nov 29, 2011 | Audit
The State of Minnesota has recently pushed the IRS regulations used to define what is really alimony/maintenance and what is child support. This is important as alimony/maintenance is deductible by the payer and child support is not deductible. Admittedly,...
by Tom Regan | Nov 22, 2011 | Audit
In the State of Minnesota, many gamblers are interested in taking the extra steps to be treated as professional gamblers. In contrast to the treatment the gambler receives from the IRS, a non- professional gambler in Minnesota is subject to the Alternative Minimum Tax...
by Tom Regan | Aug 24, 2010 | Audit
This is the seventh in a series of articles on issues surrounding the Taxation of Settlements and Verdicts. This article addresses the question of whether the fact that attorney fees are provided for by a statute has any affect on including these fees in...
by Tom Regan | Aug 17, 2010 | Audit
This is the sixth in a series of articles on issues surrounding the Taxation of Settlements and Verdicts. This article explains when and how the cost of attorneys fees may be deducted “below the line.” For cases not covered by IRC Section 62(a)(20) the United States...
by Tom Regan | Aug 10, 2010 | Audit
This is the fifth in a series of articles on issues surrounding the Taxation of Settlements and Verdicts. This article presents situations when the the expense of attorneys fees may be deducted “above the line.” Deducting Attorney Fees “Above the Line.” The American...
by Tom Regan | Aug 3, 2010 | Audit
This is the fourth in a series of articles on issues surrounding the Taxation of Settlements and Verdicts. This article explains why an award of attorneys fees is included in a taxpayer’s gross income. Gross Income and Anticipatory Assignment. The Internal...
by Tom Regan | Jul 27, 2010 | Audit
This is the third in a series of articles on issues surrounding the Taxation of Settlements and Verdicts. This article identifies some of the things you can do to protect the character of the award. Allocate Damages. If a settlement agreement allocates the settlement...
by Tom Regan | Jul 19, 2010 | Audit
This is the second in a series of articles on issues surrounding the Taxation of Settlements and Verdicts. This article addresses the amounts that can be excluded from gross income. Amounts Excluded. Internal Revenue Code Section 104(a)(2) excludes from gross income...
by Tom Regan | Jul 12, 2010 | Audit
This is the first in a series of articles on issues surrounding the Taxation of Settlements and Verdicts. The article addresses the initial question of whether these amounts are included in gross income. General Rule. The proceeds from a settlement or verdict are part...
